You don't know it. These people perhaps hire PR firms that markets thems, draw publicity and eventually investors in subtle ways and they enhance their funds. They are prohibited by law to advertise in newspapers. This is a circumspect way of beating the SEC rules. It works around evolving a GURU like figure and that nurtures a following. Read PHIL TOWN'S book RULE #1 and become your own Guru, fish all you want and you can still peek at WARREN and Pabrais portfolios from time to time to see how things are going..
look... the guy has 600% profit since 1999. that includes the tech bubble bursting, 9/11, Gulf War II, etc. just give the guy his props and dont be a such a prick. BTW, im betting Big Phil doesnt manage money - he sells a service, program or chat room right?
Why would anyone should be buying stocks when the market is going down? I would be shorting these clowns to death. Trading bear call spreads and buying puts on SPX and RUT, SOX.
Rail does not loo like a Buffet stock. The earning is erratic and hard to predict. More importantly, how often the railway companies replace their cars? year eps 2002/12 -1.41 2003/12 -1.23 2004/12 -3.76 2005/12 4.08 2006/12 10.23 On the positive side, the company has 15 cash per share.
Because the top value investors have proven they can get 30+% annualized returns without using any leverage, and by almost never having down years. Thats why. Because the market has temporary price innefficiencies and they've found a textbook method (yes, its actually written out in a textbook by ben graham) of beating the market handily over the long run. And they dont have to worry about losing 200% of their investment in a short sale, or a margin call wiping out their hedge fund.
That is 30% return in one year. There are hundreds of mutual funds that have raked in 30% Plus in the last year alone. Do a search on Mutual Funds on Marketwatch and find out. Why stagger and go after CIGAR BUTT companies, when you have Rolls Royces parked outside? I myself can produce 5-10% returns per month consistently in the options markets is that amazing or what? Its income nothing more.
These two funds will generate more than 40% a year: PRLAX MALTX Any questions why value investors are better than these mutual funds? I can post 100 more funds that will deliver more than 40% returns that will beat the pants off any value investors best years. I have a slew of these in my pocket.